We have audited the accompanying Standalone financial statements of M/s. Archidply Industries Limited ("the Company")
which comprises the Standalone Balance Sheet as at March 31, 2025, the Standalone Statement of Profit and Loss (including
Other Comprehensive Income), the Standalone Statement of changes in Equity and the Standalone Statement of Cash Flows
for the year then ended and notes to the financial statements, including a summary of material accounting policies and other
explanatory information (herein after referred to as "Standalone Financial Statement)"
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone financial
statements give the information required by the Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2025, and its Profit,
total comprehensive Loss, the changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those SAs are further described in the Auditor's
Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company
in accordance with the 'Code of Ethics' issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
the Standalone financial statement.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone
financial statements of the current period. These matters were addressed in the context of our audit of the financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter
below, our description of how our audit addresses the matter is provided in that context.
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Descriptions of Key Audit Matter
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How we addressed the matter in our audit
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Valuation of Inventories
Refer to note 8 to the financial statements.
The Company is having Inventory of Rs. 4876.24 Lakh as on
31st March, 2025.
Inventories are to be valued as per Ind AS 2. As described in the
accounting policies in note 1(9) to the financial statements,
inventories are carried at the lower of cost and net realisable
value. As a result, the management applies judgment in
determining the appropriate provisions against inventory of
Stores, Raw Material, Finished goods and Work in progress
based upon a detailed analysis of old inventory, net realisable
value below cost based upon future plans for sale of inventory.
To ensure that all inventories owned by the entity are recorded
and recorded inventories exist as at the year-end and valuation
has been done correctly
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We obtained assurance over the appropriateness of the
management's assumptions applied in calculating the value
of the inventories and related provisions by:
• Completed a walkthrough of the inventory valuation
process and assessed the design and implementation of
the key controls addressing the risk.
• Verifying the effectiveness of key inventory controls
operating over inventories; including sample based
physical verification.
• Verify that the adequate cut off procedure has been
applied to ensure that purchased inventory and sold
inventory are correctly accounted.
• Reviewing the document and other record related
to physical verification of inventories done by the
management during the year.
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• Verify that inventories are valued in accordance with Ind
AS 2
• Verifying for a sample of individual products that costs
have been correctly recorded.
• Comparing the net realisable value to the cost price of
inventories to check for completeness of the associated
provision.
• Reviewing the historical accuracy of inventory provisioning
and the level of inventory write-offs during the year.
Our Conclusion:
Based on the audit procedures performed we did not identify
any material exceptions in the Inventory valuation.
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Revenue recognition on sale of goods and impairment
loss allowance on trade receivables
Revenue is measured based on the transaction price, which
is the consideration, adjusted for volume discounts, rebates,
scheme allowances, price concessions, incentives and returns,
if any, ('variable consideration') as specified in the contracts
with the customers.
An estimate of variable consideration payable to the customers
is recorded as at the year end. Such estimation is done based
on the terms of contracts, rebates and discounts schemes and
historical experience.
In accordance with Ind AS 109 - Financial Instruments, the
Company follows 'simplified approach' for recognition of
impairment loss allowance on trade receivables. In calculating
the impairment loss allowance, the Company has considered
its credit assessment and other related credit information for
its customers to estimate the probability of default in future
and has considered estimates of possible effect from increased
uncertainties in economic environment. We identified
estimation of variable consideration and impairment loss
allowance on trade receivables as a key audit matter because
the Company's management exercises significant judgments
and estimates in calculating the said variable consideration
and impairment loss allowance
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Our audit procedures included, amongst others:
• Tested a sample of sales transactions for compliance
with the Company's accounting principles to assess
the completeness, occurrence and accuracy of revenue
recorded.
• We read and evaluated the Company's policies for revenue
recognition and impairment loss allowance and assessed
its compliance with Ind AS 115 - Revenue From Contracts
With Customers' and Ind AS 109 'Financial Instruments',
respectively.
• We assessed the design and tested the operating
effectiveness of internal controls related to sales including
variable consideration and impairment loss allowance on
trade receivables.
• We performed the following tests for a sample of
transactions relating to variable consideration:
• Read the terms of contract including rebates and discounts
schemes as approved by authorized personnel.
• Evaluated the assumptions used in estimation of variable
consideration by comparing with the past trends and
understand the reasons for deviation.
• Performed retrospective review to identify and evaluate
variances.
• Tested the design, implementation and operating
effectiveness of the Company's controls over computation
of incentives and pay out against the corresponding liability
• We evaluated management's assessment of the
assumptions used in the calculation of impairment loss
allowance on trade receivables, including consideration
of the current and estimated future uncertain economic
conditions.
• For sample customers, we tested past collection history,
customer's credit assessment and probability of default
assessment performed by the management.
• We tested the mathematical accuracy and computation of
the allowances.
• We read and assessed the relevant disclosures made
within the standalone financial statements.
Our conclusion:
Based on the audit procedures performed we did not identify
any material exceptions in the recognition of revenue and
incentives and discount expenses.
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Information other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the information
included in the Board's Report including Annexure to the Board's Report, but does not include the financial statements and our
auditor's report thereon. The Company's annual report is expected to be made available to us after the date of this auditor's report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our
knowledge obtained in the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are
required to communicate the matter to those charged with governance. We have nothing to report in this regard.
Responsibility of Management and Board of Director's for the Standalone Financial Statements
The Company's Management and Board of Directors is responsible for the matters stated in section 134(5) of the Companies
Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of
the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the
Company in accordance with the Indian Accounting standards (Ind AS) prescribed under section 133 of the Act, read with the
Companies (Indian Accounting standards)Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection, application,
implementation and maintenance of appropriate of accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation
of the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management and Board of Directors are responsible for assessing the Company's ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
The Management and Board of Directors are also responsible for overseeing the company's financial reporting process.
Auditor's Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements
may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone
financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central Government of India in
terms of sub-section (11) of section 143 of the Companies Act,2013, we give in the "Annexure A" statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2A. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
c. The Standalone Balance Sheet, the standalone Statement of Profit and Loss including other Comprehensive Income,
Standalone Statement of changes in Equity and the Standalone Statement of Cash Flow dealt with by this Report are in
agreement with the books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under
Section 133 of the Act, read with the Companies (Indian Accounting standards) Rules, 2015, a amended from time to time.
e. On the basis of the written representations received from the directors as on 31st March, 2025 taken on record by the Board
of Directors, none of the directors is disqualified as on 31st March, 2025 from being appointed as a director in terms of Section
164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure B". Our Report expresses an unmodified opinion on
the adequacy and operating effectiveness of the company's internal financial controls over financial reporting.
g. The modifications relating to the maintenance of accounts and other matters connected therewith in respect of audit trail are
as stated in the paragraph 2B(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
2B. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the
explanations given to us:
i. The Company has disclosed the impact of pending litigations which could impact its financial position as
mentioned in note no.36 to the standalone Financial Statement.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any
material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by
the company.
iv. a. The management has represented that, to the best of its knowledge and belief, no funds have been advanced
or loaned or invested (either from borrowed funds or share premium or any other source or kind of funds)
by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall:
• directly or indirectly lender invest inother persons or entities identified in any manner whatsoever("Ultimate
Beneficiaries") by or on behalf of the Company or
• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
b. The management has represented, that, to the best of it's knowledge and belief, no funds have been
received by the company from any person or entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the company shall, whether,
• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party ("Ultimate Beneficiaries") or
• provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on audit procedures as we considered reasonable and appropriate in the circumstances, nothing has
come to our notice that has caused us to believe that the representations under sub-clause iv(a) and iv(b)
contain any material mis-statement.
v. The company has not declared or paid any dividend during the year, hence the provisions of section 123 of the
Companies Act, 2013 is not applicable to the Company.
vi. Based on our examination which included test checks and in accordance with requirements of the
Implementation Guide on Reporting on Audit Trail under Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014, the Company has used accounting software for maintaining its books of account, which have a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the respective software.
Further, where audit trail (edit log) facility was enabled and operated throughout the year, we did not come across any
instance of audit trail feature being tampered with during the course of our audit.
Additionally, the audit trial has been preserved by the company as per the statutory requirements for records retention.
The back-up of audit trail (edit log) has been maintained on the servers physically located in India for financial year
ended 31st March, 2025.
2C. With respect to the matter to be includedin the Auditor's Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company
to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration
paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs
has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
For GRV & PK
Chartered Accountants
FRN:008099S
(Kamal Kishore)
Partner
Place: Delhi (Membership Number.205819)
Date: 22.05.2025 UDIN: 25205819BMKUHS5724
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